The real lesson from Dick Smith’s collapse

Forget the focus on private equity, discretionary retail isn’t easy.

With Dick Smith (ASX:DSH) calling in the administrators, most of the focus has been on the role that private equity company Anchorage Capital played in its demise.

Many investors think this is yet another reason to avoid buying stock in private equity floats, a position I’d largely agree with. There is, however, an even bigger lesson.

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